Those interested in clearly defined measures of performance of the protocol and the DAO will find this an interesting read. As always feedback, comments or constructive criticism are strongly encouraged.
We would like to highlight a few takeaways we feel are important from these reports. These are very much our opinion and we are not qualified to give any kind of advice.
First of all, thank you for publishing these comprehensive reports. We will try to share some constructive feedback following our regular three step process.
CONTEXT:
Financial reports are more than just numbers on a page; they are necessary to enshrine trust and credibility by providing a transparent view of the platform’s economic health.
Another crucial aspect is risk mitigation for users and investors, as understanding the financial health of a DeFi platform is key to assessing risk.
Most importantly they are also key elements for strategic decision-making: for both developers, governance participants, and other stakeholders. These reports provide insights into the effectiveness of current strategies and help shape future initiatives.
ANALYSIS:
Breaking down this report, we found that some improvements could be made and here are a few of the aspects we would appreciate to see in future reports:
Tokenomics: A breakdown of the token supply, distribution, and any token-related activities. Tokenomics reports ensure clarity on the economic incentives and governance structures in place.
User Growth Metrics: Metrics such as the number of active users, new registrations, and user retention rates provide insights into the platform’s user base and growth trajectory.
Funding Rates and Liquidation Metrics: Details on funding rates and liquidation as part of the revenues could be an interesting additional level of detail. Traders need to be informed about the diverse set of fees the platform can collect and this would be even more interesting to see how revenues in each category evolves through time.
CONCLUSION:
As DyDx journeys toward V4, financial transparency becomes a nuanced dance between openness and the complexities of perpetual futures trading. In this delicate balance, financial reports become more than documents; they become the roadmap for traders and investors.
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In this post, we have tried to provide some constructive feedback to help improve the future reports, but we also want to recognize the great level of detail provided by the existing ones. Thank you for reading, on behalf of the entire PRO Delegators Validator team, we wish you all a pleasant day.
Thanks for this thoughtful feedback @Govmos. You make some excellent suggestions.
Look out for some user growth and retention metrics in the Epoch 29 report, that is a great idea and definitely a missing element in understanding DYDX economics.
Your other suggestions also make a lot of sense and I’ll look into how they can be incorporated in the future too.
